Canada’s screen-based media production industry bounced back sharply this past year, driving total production volume up 4.6% to reach $10.17 billion, according to Telefilm Canada’s fiscal 2025-26 Annual Report released this week.

The report – marking the second year of Telefilm’s 2024–27 strategic plan, “Together, For a Lasting Impact” – is a complex snapshot of the industry, with growth in total production volume and global streaming reach, offset by declining domestic feature production and screen time in Canadian theatres.

Production uplift driven by foreign services

The uplift in production volume was primarily fueled by a 9.5% resurgence in foreign production and production services following the resolution of U.S. labour strikes that disrupted the sector last year. Foreign production services now account for 52% of total production volume in Canada. Domestic broadcasters also contributed to the bump, increasing internal production expenditures by 5.4%.

Despite that growth, domestic film and television employment experienced a slight contraction. Total industry jobs fell 0.3% to 181,360, with Canadian television production employment dropping 6.6% (58,000 jobs) and Canadian feature film employment falling 8.4% (8,420 jobs).

The volume of Canadian feature film production declined 3.2% to $460 million, with the total number of films produced dropping 10% from 147 to 132. However, budgets for those films grew, with the average budget for English and French fiction feature films rising nine per cent to $3.5 million.

Global audiences outpace domestic theatrical attendance

At the box office, overall Canadian theatrical ticket sales remained steady at $836.9 million in 2025. However, Canadian feature films accounted for just $14.2 million of that total with French-language releases generating $11.3 million and English-language films taking in $2.9 million. Domestically, Canadian films saw their theatrical screen time slip from six to four per cent, while television broadcast time dropped from 23% to 21%.

In contrast, Canadian features experienced momentum abroad. Canadian films generated $67.6 million at the global box office across 70 international markets covered by Comscore data. France emerged as the top export destination, generating $25.4 million (37.5% of total international revenue), followed by the U.S. ($9.9 million), the UK/Ireland ($5.4 million), and Germany ($4.1 million).

In global theatres tracked by Dublin-based software company, usheru, 419 Canadian films were screened over 462,000 times across 9,678 cinemas in 55 countries – a 28% increase in international country reach compared to 2024.

Streaming subscription rates held firm at 77% of Canadian households. Netflix led market adoption at 59%, followed by Amazon Prime Video (52%), Disney+ (29%), and Crave (22%). Crave and CBC Gem hosted the largest catalogues of Canadian feature films. Internationally, 1,198 Canadian films were accessible across 411 streaming platforms in 171 countries. On average, a Canadian feature was available on 18 platforms across 24 countries.

Funding demand

Telefilm’s internal funding programs faced intense demand. The agency received 778 applications across its Production, Theatrical Documentary, and Talent to Watch programs. While English-market applications continued to dominate total volume, the French market experienced a 20% spike in applications.

Overall, funding requests jumped 17%. Telefilm was able to finance 115 films across the country, including projects in every province as well as the Yukon Territory. Growth categories included animated projects ($3.1 million invested) and youth-oriented films, alongside dramas, comedies, and thrillers.

“The sustained gap between demand and available funds underscores a continued high level of oversubscription across our programs,” noted the report, highlighting significant refusal rates in both English and French markets.

International co-productions strengthened

International partnerships were a bright spot for financing larger projects. Telefilm funded 31 official treaty-governed co-productions with a total investment of $28.3 million – up from $18.7 million for 32 co-productions the previous year.

Across the broader audiovisual sector, Telefilm recommended 53 treaty-governed film and television projects representing $371.4 million in total production budgets across 23 partner countries. Notable was the return of partner countries like Portugal (for the first time since 2002–03), Brazil, and Singapore.

Telefilm will host its Annual Public Assembly virtually on Dec. 3, where CEO Julie Roy and Board Chair Sylvain Lafrance will answer industry questions and outline strategic priorities for the coming fiscal year. Set to take place at 2 p.m. EST, the event will be streamed on Telefilm Canada’s YouTube channel.